Medco EP, PLN still in talks over gas supply from Simenggaris

By Godang Sitompul

PT Medco EP Indonesia, a subsidiary of listed oil and gas company PT Medco Energi Internasional Tbk, said it is still in talks with state electricity company PT PLN to supply gas from its Sembakung field within Simenggaris block in East Kalimantan.

?Medco is still in serious talks with PLN over gas supply from Simenggaris,? Communication Manager PT Medco E&P Indonesia, Joang Laksanto said.

?That?s true. We are still negotiating (with Medco),? said Division Head for Fuel and Gas of PLN, M. Suryadi Mardjoeki told Petromindo.com.

Suryadi declined to disclose the price of gas it would buy from the Simenggaris block.

Separately, President Director of PT Medco Energi Internasional Tbk, Lukman Mahfoedz said the Joint Operating Body (JOB) Pertamina-Medco expects to complete the construction of Simenggaris gas processing facilities this month.

Gas production at the South Sembakung gas field is estimated to reach 30 mmscfd. Part of the gas production will also be supplied to Tanah Tidung regency, East Kalimantan.

Editing by Roffie Kurniawan